Top Stock Market Loser: IDBI Bank Shares Crash 16%; Bank Says Privatization Process ‘Confidential’

IDBI Bank shares crashed sharply on Monday, March 16, impacting the banking stock segment after reports surfaced that the Government of India may scrap the long-pending IDBI Bank privatization process. The sudden development triggered heavy selling in the stock, with the IDBI share price plunging more than 16% during intraday trade.

The sharp fall IDBI share price wiped out a major portion of the bank's market value and made IDBI Bank one of the top losing banking stocks of the day, due to negative investors reaction to uncertainty around the strategic disinvestment plan.

IDBI Bank Share Price Today

The IDBI Bank share price today opened nearly 10% lower at Rs. 82.18 on the NSE, compared to the previous close of Rs. 92.18. Selling pressure increased gradually during the session, dragging the stock down to an intraday low of Rs. 76.67, with decline of around 16.8% in a single day. With this fall, the IDBI Bank stock is now about 34.73% below its 52-week high of Rs. 118.45,

Why IDBI Bank Shares Fell?

According to major media reports, the strategic disinvestment of IDBI Bank may be halted after financial bids submitted by potential buyers failed to meet the government's confidential reserve price.

Several bidders, including Fairfax Financial Holdings and Emirates NBD, had shown interest in acquiring a controlling stake in the bank.However, the bids reportedly fell short of the valuation expectations set by the government. The proposed transaction involved the sale of a 60.7% stake in IDBI Bank, including 30.48% held by the Government of India and 30.24% owned by LIC (Life Insurance Corporation of India).

The IDBI Bank privatization plan, first announced in 2021, was expected to raise around Rs. 30,000 crore for the government. However, after nearly five years of the divestment process, the future of the deal now appears uncertain.

IDBI Bank Response to Reports

Following the sharp fall in the IDBI Bank stock, the bank issued a clarification in response to a query from Bombay Stock Exchange regarding media reports suggesting the privatization process may be scrapped.

In its response, the bank stated "This is with reference to BSE letter L/SURV/ONL/RV/SG/ (2025-2026)/ 217 dated March 16, 2026 seeking clarification on the news report appearing in https://www.moneycontrol.com dated March 16, 2026 quoting "IDBI Bank stock crashes over 13% after reports govt. may scrap majority stake sale due to low price bids". It is hereby clarified that the proposed Strategic Disinvestment of IDBI Bank Limited is a confidential process being undertaken by the Government of India (GOI) and, hence, IDBI Bank is not in a position to either confirm or deny the referenced news"